Krog Corp.’s planned acquisition of the Trico Products Corp. warehouse building in downtown Buffalo has been delayed again, as the city agency that currently owns the former manufacturing plant approved a one-month extension to the purchase agreement.
Buffalo Brownfield Restoration Corp. on Wednesday agreed to extend the contract until the end of July, giving the Orchard Park developer an additional 30 days to complete the deal. Board members had discussed the issue in executive session prior to the vote but did not disclose further information on the reason for the delay.
Krog is buying the 617,000-square-foot complex at 817 Washington St. for $35,000, but plans to spend an additional $50 million to redevelop the facility – actually five buildings constructed from 1890 to 1954 – into a 500,000-square-foot mixed-use project.
Plans by Architectural Resources and C&S Engineers call for a 138-room extended-stay hotel, largely aimed at visitors to the Buffalo Niagara Medical Campus, plus 130 to 150 loft-style market-rate apartments of 1,200 to 2,000 square feet each. Buffalo-based Hart Hotels will run the hotel. The building will also feature commercial and retail space to meet Medical Campus needs, as well as an internal parking ramp.
The site is contaminated, so Krog will remediate the site under the state Brownfield Cleanup Program, which will also yield brownfield tax credits to support the financing. The developer also plans to pursue state and federal historic tax credits, as the facility was originally used by Trico, John R. Oishei’s windshield wiper manufacturer.
Work had been expected to begin this past spring, with the hotel and commercial space slated for completion by mid-2017 and the rest of the building done by 2018, but that may now be delayed.